Conventional Mortgage Loans in Austin, TX
The most common home loan in America — not backed by the government, so lenders have more flexibility on terms. Ideal for borrowers with solid credit and stable income.
Why buyers choose conventional financing
Is a conventional loan right for you?
Conventional financing tends to work best for borrowers with strong, documentable credit and income. If your income is harder to document, our Bank Statement or DSCR programs may be a better fit.
Conventional loan FAQ
Conventional loan requirements at a glance
Most conventional mortgage lenders look for a credit score around 620 or higher, a debt-to-income ratio generally under 45-50%, and two years of documented income and employment history. Borrowers with credit scores of 740 and above typically qualify for the strongest conventional mortgage rates, which is why we review your credit profile before locking anything in. Because conventional loans are not government-insured, lenders have more flexibility on property type — you can use conventional financing for a primary residence, a second home, or a rental property in Austin, Round Rock, Cedar Park, Georgetown or anywhere else in Texas.
Conforming loan limits and jumbo alternatives
Conventional loans that fall within the annual conforming loan limit set by the Federal Housing Finance Agency qualify for standard Fannie Mae and Freddie Mac pricing. Those limits rise most years to track home price growth, and higher ceilings apply in more expensive counties. If your purchase price pushes past the conforming limit for your county, we can quote a jumbo or Non-QM alternative side-by-side so you can compare the true cost difference rather than assuming a jumbo is your only path.
Fixed rate or adjustable rate?
A 30-year fixed conventional mortgage remains the most common choice for Austin homebuyers who plan to stay put, since the payment never changes. A 15-year fixed loan carries a lower interest rate and builds equity dramatically faster, at the cost of a higher monthly payment. Adjustable rate mortgages — 5/1, 7/1 and 10/1 structures — offer a lower introductory rate for buyers who expect to sell or refinance within that fixed window. We model all three against your actual numbers instead of guessing.
Why work with a mortgage broker on a conventional loan
Every wholesale lender prices conventional loans slightly differently based on credit score, loan-to-value, property type and occupancy. As an Austin-based mortgage broker, Wise Capital Mortgage shops your conventional mortgage across our full lender panel rather than selling a single bank's rate sheet, then walks you through the loan estimate line by line so you understand exactly what you are paying and why.